R N GHANEKAR AND CO COMPLAINA Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) The Complainant, a registered partnership firm, entered into a contract with the Municipal Corporation of Greater Bombay (Opposite Party No. 2) for construction of a sewage pumping station at Sion-Koliwada in 1984. The Complainant took out Contractors' All Risk Insurance Policy for Rs. 89,52,000/- in April, 1984 for the Contract work. The insurance cover was for a period of 18 months from 4.1.1984 plus 12 months maintenance period from the 4th July, 1985.

(2.) In pursuance of this contract the Complainant excavated a pit which was protected by the construction of a retaining wall short creating of the exposed surface and stitching of the rock surface with steel pins. In spite of all these precautions the pit collapsed on the 8th March, 1985 on its north and west sides.

(3.) The Complainants had served notice on the Insurance Co., the Opposite Party, regarding the collapse of the excavated pit. But the Opposite Party No. 1 appointed a surveyor who is said to have estimated the loss at Rs. 10.83 lakhs approximately though the survey report has not been made available to the petitioner. The Complainant furnished details of the claim to the Opposite Party No.1 on the 5th February, 1987, an estimate of the claim on the 25th February, 1987 and preferred a claim on the policy in November, 1989.